Intel’s stock price surged 30% at one point, while AMD and ARM’s stock prices plummeted.
On September 18, Nvidia (NVDA) and Intel (INTC) officially announced that Nvidia would acquire $5 billion worth of Intel common stock for $23.28 per share.
Nvidia CEO Jensen Huang said the partnership would make Nvidia a major customer for Intel’s server CPUs.
After the announcement, Intel’s (INTC) stock price surged 30% at one point, closing up 22.8% at $30.57. Nvidia’s (NVDA) stock price also rose 3.5%.
In contrast, AMD’s (AMD) stock price plummeted over 5% before rebounding and closing down 0.8%. ARM’s stock price plummeted 7% before closing down 4.5%. TSMC’s (TSM) stock price opened down 1.8% before rebounding and closing up 2.2%.
[Source: TradingView; Intel (INTC) Stock Price Trend 2025]
Analysts point out that this partnership is a win-win for both parties: Intel will receive $5 billion in financing and be able to integrate Nvidia’s GPU technology into its PC chips. This will directly enhance the competitiveness of Intel’s products in the desktop and laptop markets, enabling it to more effectively compete with AMD, which has steadily gained market share in recent years.
On the other hand, Nvidia will be able to integrate Intel’s processors into its own data centers. As Nvidia integrates AI chips into larger computing clusters, it will need Intel’s CPUs to handle general-purpose computing tasks that its own GPUs are not adept at.
“This is a game-changing moment,” said Intel CEO Li-Mo Chen. The two companies hope to create a system-on-chip (SoC) that combines CPU and GPU processors to create a new generation of integrated laptop chips.
Is this a nightmare for AMD, ARM, and TSMC? Analysts: The impact on TSMC will be minimal.
Nvidia and ARM have a long-standing partnership. Nvidia’s most powerful systems, such as the GB300 NVL72, have historically used only ARM CPUs. However, they will now face competition from Intel’s x86 CPUs.
AMD will be particularly impacted. According to IDC, by 2025, AMD’s CPU market share will grow to 36%, while Intel’s will decline to 55%. Nvidia presents Intel with an opportunity to suppress AMD.
For TSMC, the biggest question is whether Nvidia will use Intel’s foundry services.
